Gas prices fell for the eighth consecutive day on Wednesday. Traders paid 77 euros for a megawatt-hour on Wednesday morning. This is the lowest price for gas since Russia attacked Ukraine in February.
The decline is mainly due to the mild winter weather in much of Europe. The relatively high temperatures are also expected to continue for a while. As a result, households and businesses have to consume less fuel, meaning gas supplies are better maintained.
Two weeks ago a megawatt hour still cost more than 137 euros. Meanwhile, the price has fallen by almost 44%. Compared to the peak price of around 350 euros at the end of August, the drop is even more than 75%.
A consistently low gas price can lead to lower energy bills in the coming months. If gas suppliers like Eneco, Essent and Vattenfall can buy their gas cheaper, they can also lower prices for households in the long run.
Whether you’ll actually pay less depends, among other things, on your supplier’s purchasing policy and the type of contract you have. The price cap will also take effect on January 1st. This should also help keep your energy bill affordable.
A price of 77 euros is still high compared to previous years. Eighteen months ago, for example, a megawatt hour cost just over 20 euros. Before that price was even lower.
